Please select one of the choicesRegarding the Security Market Line $($SML$)$ and the Capital Asset Pricing Model $($CAPM$)$:

If the expected return is less than the required return estimated with the CAPM, the expected return

will plot below the SML and the asset is considered to be overpriced

If the expected return is greater than the required return estimated with the CAPM, the expected

return will plot above the SML and the asset is considered to be underpriced

If the expected return is greater than the required return estimated with the CAPM, the expected

return will plot below the $5$ ML and the asset is considered to be overpriced

If the expected return is less than the required return estimated with the CAPM, the expected return

will plot above the SML and the asset is considered to be underpriced